Video will play in Play now Don't auto playNever auto playA Donald Trump election victory and corresponding rise in US bond yields would be a "worst case scenario" for the local sharemarket, according to JBWere New Zealand. "We believe markets are under-pricing the risk of a Trump upset next month," JBWere investment strategist Bernard Doyle said in report released on Friday. "Our best judgement is a 5 to 10 per cent global equity pullback would be likely in the event of a Trump surprise," Doyle said. "Our worst case scenario would be a Trump victory with an attendant rise in US bond yields," Doyle said. He said investors in US treasuries would also expect higher returns on their investment as a result of the risks associated with increased government borrowing likely to occur under a Trump presidency.

Source: New Zealand Herald October 15, 2016 23:48 UTC